Yes — the sentence is grammatically correct.
What it means: The skunk makes a smelly cloud so other animals go away.
Parts of the sentence (simple):
- To scare off enemies — explains the reason (why the skunk does it).
- The skunk — who does it.
- releases — the action (what it does). You can also say “sprays”.
- a stinky cloud — what the skunk makes.
Is it correct? Yes. The words are in the right order and it makes sense.
Simple alternatives you can use:
- The skunk sprays a stinky cloud to scare away other animals.
- To scare animals, the skunk sprays a stinky cloud.
Choose the one you like — all of these are correct and easy to understand.